Households with savings are being warned this September (Image: Getty)
An urgent warning has been issued to anyone with savings as thousands of accounts suddenly lose their top-paying interest rate.
A staggering £119billion of savings are set to mature before the end of 2026, according to Skipton Building Society.
But its research suggests that more than a third of account holders don’t know what ‘account maturity’ means, or why they are losing their interest rate.
New analysis from Skipton Building Society of CACI data reveals that £119.6billion held in fixed-rate savings accounts is due to mature between this September and the end of the year, including £56billion in non-ISA accounts and £63.6billion in cash ISAs.
The findings mark the start of what Skipton is calling “Maturity Season” – a period when large volumes of fixed-rate savings accounts reach the end of their term and savers face important decisions about where to put their money next.
Many of these accounts were opened during a time where rates were set higher, and if left unchecked, could be automatically transferred to lower-paying variable-rate products, potentially reducing the returns savers receive on their money by up to 45%.
Many fixed-rate savings accounts opened during the higher-rate environment of recent years are now reaching maturity. In some cases, savers who take no action may see their money automatically moved into lower-paying variable-rate accounts, potentially reducing future returns.
The maturity wave is particularly pronounced this autumn, with £35.7billion due to mature in September, followed by £29.7billion in October and £29.6billion in November.
The cost of inaction could be significant. CACI data shows fixed-rate non-ISA accounts maturing between September and December 2026 pay an average rate of 3.99%, compared with 2.19% for the average easy-access account. Fixed-rate ISAs average 3.97%, versus 2.54% for easy-access ISAs. As a result, savers who fail to review their options could see the interest return on their savings fall by almost half.
Alex Sitaras, Head of Savings and Partnerships at Skipton Building Society, said: “Many savers worked hard to secure competitive fixed rates over the last few years, but with more than £119 billion due to mature in the coming months, there is a real risk that people could miss out simply by leaving their money where it is.
“Too often, people focus on the rate they opened an account with and forget to review what happens when that deal ends. The difference between a competitive rate and a lower variable rate can have a meaningful impact on returns over time.
“The good news is that there is no one-size-fits-all answer. Some people may decide a new fixed-rate savings account is right for them, while others may prioritise flexibility, tax efficiency or longer-term financial goals.
“With ISA rules set to evolve, it’s more important than ever that people take stock of their options rather than making decisions on autopilot. For some savers, that may mean keeping their money in cash, while for others it could be worth exploring alternatives such as investments or pensions, depending on their circumstances and attitude to risk.
“That’s why we encourage savers to start the conversation early and seek guidance if they’re unsure. At Skipton, we can help people understand the full range of options available to them, so they can make informed decisions about what’s right for their needs. A short conversation today could make a meaningful difference to how hard their money works in the years ahead.”
